Hi Geo,

A good question. One I am interested in also. I think streams of income are important for the cashflow but also the time flexibility. Hopefully these multiple streams allow time to be leveraged so have free time to investigate opportunities.

I learnt an interesting lesson about being too committed to work recently. I saw a definite +ve cashflow property advertised but wasn’t able to do much about it for a couple of days due to work commitments. In this time someone else had bought the property!

There are some ideas mentioned already, such as:
– vending machines… I knew someone who had a number of them in Melbourne and he said he averaged $14 each per week. Not a lot of money in a sense for the effort of keeping them stocked but get 10 of them… $140/week is a handy sideline. I can’t confirm these figures but have no reason to doubt wheat he said.

– buy/sell on eBay / Trading Post / weekend markets… the basic idea of buying something, marking it up and reselling. I’ve even seen people buy from garage sales on Saturday then resell on Sunday at market stalls

– a low risk share trading strategy could be useful too. The trick (in my opinion) is to have a written plan, cash management strategy, remove the emotion/psychology/ego etc. and it can be quite successful. Maybe refer to some of the original sources such as books by W D Gann, Dow etc. They were brilliant men.

– I’ve wondered about laundries… could they be quiet little earners?

– set up a website… might be hard to get up and running with profit… seems like a long haul

– property… there are many strategies depending on skills, experience, time etc. etc. Ideas such as:
– +cashflow… normal buy/hold
– buy/renovate/sell… this can be your own home or other properties
– vendor terms… charge someone else higher percentage than you pay… difference is +ve cashflow
– buy land, get development approvals, sell to developer/builder at higher price because you have done the leg work for them
– property development

– a general strategy is to find something that works and copy it but do it better (was McDonalds the first place to make burgers?)

– import something and sell

Take care & regards,
Doug

Hi Kay Henry,

Sorry to be slow to reply to your (very interesting) comments. Good point you make that repairs cost the same regardless of the rental of the property

I’d thought about getting 7%ers as you suggest but is it possible to build up a portfolio of properties to replace income? If interest rates are running at about 7% and property is returning 7% property likely to be negative gear unless can make positive with depreciation claim.

I’m just trying to think this through for myself as I would like to purchase properties with aim of creating ‘passive’ income (to replace work salary). Do you think the properties in the 7-8% range (which are certainly out there) could do this?

If you see this post your thoughts would be much appreciated.

Thankyou and regards,
Doug

Hi Jet Dollars,

The property you found sounds like a beauty and is inspiring… thankyou. Could I ask a question (to Jet Dollars or anyone else who has a thought)? I’m unsure how we manage the properties we find in various places. Example, if we have are building up a collection of properties and they need reqular maintenance – repaint, fence repaired, investigate a water leak, wash it after messy tenants etc. Time and travelling to maintain a large group of properties would be significant. Would you try to do that yourself or pay others?

Also, considering the above, would you try to buy certain types of properties to minimise maintenance?

Your thoughts would be much appreciated.

Thankyou.

Regards,
Doug